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Who pays more for electricity? San Diegans or people in Riverside County?

As the heatwave continues to torment people, shockingly high electricity bills seem to be an added annoyance this summer.

SAN DIEGO (NEWS 8) – As the heatwave continues to torment people, shockingly high electricity bills seem to be an added annoyance this summer.

Costumers have seen an increase over years past because of San Diego’s weather. However, what would electricity bills look like outside of SDG&E’s coverage area? What would a San Diego residence's energy use cost in another part of the state?

News 8 first took a look at its executive producer Barbara Richard's bill. SDG&E billed Richards a whopping $527 for electricity. At 1200 kilowatts, Richards says she did not use enough to face high-use charges. She did admit she used more power than last year given the high heat, but her bill showed double the amount than previous.

Next, News 8 took a look at digital content producer Jarrett Wright’s electricity bill. He lives in Riverside County.

He used slightly less electricity than last year at 745 kilowatts.

His bill? Just $151.

Yes, Wright did use less power than Richards, but when numbers get crunched, the difference is still considerably huge.

First, Edison charges about a penny less for its tier one rate and more generous with how much you can use. Tier two is where customers really see a difference, with SDG&E charging almost double.

Further, Edison charges less than half what SDG&E does for generating power.

Richards also should have saved about $30 in taxes since the City of San Diego charges utilities a franchise fee to operate on city streets – that is then passed on to consumers.

If Richards lived in Riverside County, her bill would be about $250 – that is less than half of what she is being billed by SDG&E.

What about Jarrett?

If he moved to SDG&E’s territory he would pay 90 percent more, or $253.42.

Below is the statement and graph SDG&E sent News 8 as a reply for comment:

At SDG&E we are committed to delivering clean, safe and reliable energy to every family and business we serve. Pricing changes based on seasonal demand, which is typically higher in the summer months, translating to higher than normal bills. Prices are also determined by how and where the electricity is generated. At SDG&E, around 45 percent of the electricity we deliver to our customers comes from renewable sources such as solar and wind. The national average among utilities is 8 percent. The increase in renewable energy has a direct benefit for our environment by reducing greenhouse gas emissions that are emitted during other forms of electricity generation.
 
In California, electricity prices are determined by a variety of factors including how much electricity is being used by homes and businesses; the number and type of customers in a given service area; where the electricity comes from and how it is generated; and the cost to deliver that electricity to every home and business regardless of location.
 
Comparing SDG&E's rates to So Cal Edison is not an apples-to-apples comparison. Additionally, while a rate comparison may be the focus, customers often ask about how their bills stack up against other utilities. As you'll see in the chart attached, the average SDG&E residential bill from early 2017 to early 2018 was among the lower third across the nation. SDG&E customer base is mostly residential. Other utilities such as So Cal Edison have more industrial customers that can absorb more of the cost increases. SDG&E also has a much smaller customer base overall (SDG&E serves 3.6 million people; Edison serves more than 15 million). Given there are fixed costs - infrastructure such as power poles and pipelines to serve reliable and safe electric and gas - there are less customers in SDG&E's service area to cover those costs, making the price per kw/h higher than other utilities.
 
We have also modernized a lot of our system - we have more than 60 percent of our power lines underground, which is more expensive than overhead lines. We've made these lines underground to improve safety and enhance community and visual character of the neighborhoods we serve.
 
And for additional information and background - Per state law, SDG&E does not profit off the sale of electricity to our customers. In other words, the electricity we purchase for our customers is a direct passthrough to their bills, SDG&E does not profit from that transaction. Our earnings come from the infrastructure system required to meet our customers' energy needs. The power grid is growing more complex each year as our customers have new choices and energy needs. For example, the power grid must be able to support a growing number of electric vehicles and private rooftop solar systems.

Residential graph

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